WALNUT CREEK — Negotiations for a development agreement between the city, BART and developers of the Walnut Creek BART Transit Village have fallen apart.

Such an agreement would have spelled out what the city could receive in exchange for any special considerations requested from developer Walnut Creek Transit Lifestyles Associates, a joint venture of a company called Transit Village Associates and apartment giant BRE Properties. The combination residential-commercial project will now go forward though the normal city planning process.

WCTLA wants to build 596 apartments, 22,000 square feet of retail and commercial space, 16,700 square feet of “commercial-residential flex space” (that could end up as either), 4,000 square feet of office space and a new five-level parking garage to the intersection of Ygnacio Valley Road and California Boulevard. The project is proposed to be built in phases starting as early as 2013 and finishing in 2018.

A development agreement is often used with big projects to insure the city gets something — usually money — in return for a waiver or consideration for the developer. Councilman Gary Skrel and Mayor Bob Simmons were both part of the committee that tried to hammer out such an agreement with developers and BART. But after months of meetings, all sides decided to move forward without a binding agreement, Skrel and Simmons announced at a City Council meeting Tuesday.

“There are no hard feelings,” said Skrel, who thinks this works out best for the city.

WCLTA wanted an eight-year freeze on development fees — fees that would pay for things like public art, low-income housing and parks. The estimated revenue from all those fees is about $12 million. But the three camps couldn’t agree on who would get what and how much.

This benefits Walnut Creek because fees will likely be higher in the future, Skrel said.

“The council plans to look at reviewing all city fees (for all potential projects) in the coming year,” he said Wednesday. “So why hold future councils to this agreement when we may generate more money?”

Skrel disagreed that without such an agreement there will be no public benefits. The project itself offers a new bus terminal, a police station, a mid-block crossing on California and bike facilities, he said.

But many residents have major concerns with the project, from its density to the traffic it would add to an already congested area.

Spokespeople for developers declined to comment. The Planning Commission is expected to review the project and make recommendations to the City Council at its meeting 7 p.m. Sept. 27, City Hall, 1666 N. Main St.

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